|By Peter Schrank from The Economist Magazine|
An editorial from The Economist:
IN THESE times of tribulation for the euro, Germany offers a prophecy. One day, when the euro zone has got beyond the wilderness of austerity and structural reform, it will be rewarded with prosperity. Europe will have worked off its debt and become more competitive. Markets will see that the real problems of the world economy lie in debt-laden America and Japan.
The more the outside world criticises Germany, the more fervently senior German officials cling to this vision. Others have reason for doubt. In the third year of the euro crisis things are getting worse. Even good news brings no relief. Greece avoided the meltdown that an election victory by the anti-austerity Syriza party might have brought. But the new government of Antonis Samaras, leader of the centre-right New Democracy party, may not be able to halt Greece’s death spiral. An agreement to give Spain up to €100 billion ($127 billion) of euro-zone loans to recapitalise its banks did not stop the slide for long. Markets jumped at hints from the G20 summit that European rescue funds might start buying Spanish and Italian bonds, but for how long?Read the rest here.